Flexible Mortgage Solutions

The Ready-For-Anything Mortgage

For when you discover twins run in the family.

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TD mortgages have options that fit your life and help you prepare for the unexpected. Whether you’re having a baby, taking a sabbatical, or your financial needs grow and change with time, a TD mortgage offers a range of flexible features to suit you.


Expand Speed Up Your Payments

Pay your mortgage faster and save money

There are several simple strategies you can do to help you pay off your mortgage as quickly as possible and free up funds sooner for other priorities – like travelling, paying for school or upgrading your home.

Increase the frequency of payments

Take advantage of biweekly or weekly payment options. To do so, half the monthly payment amount you currently make, or even quarter it and make payments on a weekly basis. The result? You pay less interest over time, and more of your money will go against the principal you owe.


Expand See example

Example: A $100,000 mortgage, 25-year amortization period, 6% interest rate on a 5-year term.

Monthly Payments

Payment: $631.81

Interest over term: $28,219.33

Outstanding Principal Amount at the end of 5 years: $89,830.73


Bi-Weekly Payments

Payment: $319.91

Interest over term: $27,622.40

Outstanding Principal Amount at the end of 5 years: $85,950.54

Your interest savings: $596.93

Your extra principal balance reduction $3,880.19


Weekly Payments

Payment: $159.96

Interest over term: $27,594

Outstanding Principal Amount at the end of 5 years: $85,921.62

Your interest savings: $624.57

Your extra principal balance reduction $3,909.11

Take advantage of increased payment options

By increasing your mortgage payment amount, you can significantly reduce your interest costs and have the benefit of paying down your mortgage faster. As a TD Canada Trust customer, you may increase your payment by up to 100% of the regular payment amount during the term of the mortgage.


Expand See example

Example: A $100,000 mortgage, 25-year amortization period, 6% interest rate on a 5-year term with monthly payments increased by 10% to $703.79.

Total interest over term
$27,602.11
Outstanding principal amount at the end of the term
$85,374.71
Your interest savings
$617.22
Your extra principal
balance reduction
$27,602.11

Take advantage of lump-sum payments

You can pay off your mortgage faster by making lump sum payments. Lump sum payments are applied to your principal amount, and can significantly reduce your interest costs. As a TD Canada Trust customer, you can make a lump-sum payment of up to 15% of the original borrowed amount each year without prepayment charge on your closed mortgage term.


Expand See example

Example: A $100,000 mortgage, 25-year amortization period, 6% interest rate on a 5-year term with 2% lump sum payments made annually on the anniversary of the mortgage start date.

Annual lump sum payment
every year for four years
$2,000
Total interest over the term
$26,924.85
Outstanding principal amount at the end of the term
$78,536.25
Your Savings
$1,294.48

Combine money saving strategies

You don’t have to use just one strategy to save – you can combine all three of the ideas outlined above.


Expand See example

Example: A $100,000 mortgage, 25-year amortization period, 6% interest rate on a 5-year term with weekly payments, increased by 10% (to $175.95/week) and annual lump sum payments of 2% ($2,000) made annually on the anniversary of the mortgage start date for 4 years.

Total interest over term
$25,620.87
Outstanding principal amount at the end of the term
$69,804.05
Your interest savings
$2,598.46
Your extra balance reduction
$15,570.66

Expand Slow Down Your Payments

Preparing for a life-changing event or taking an extended trip? Consider a payment vacation. Need to respond quickly to an unexpected situation? A payment pause can help you manage. A payment reduction can also be a good feature to consider if you’re planning on taking parental leave, working part-time, or going on sabbatical, among other things.

Payment Pause

When you need to take a break from your mortgage payment or respond to an unexpected situation, it is great to know that you have the flexibility to pause a mortgage payment. Skip the equivalent of one monthly mortgage payment, one time per calendar year, no more than four times during the amortization period of your mortgage.


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Skipped payments do not need to be consecutive, so long as they do not exceed the equivalent of 1 monthly payment per calendar year or cross over the calendar year end.

Payment Frequency
Monthly
Monthly Mortgage Payment Equivalent
1 payment
Payment Frequency
Bi-weekly, bi-weekly rapid or semi-monthly
Monthly Mortgage Payment Equivalent
2 payments
Payment Frequency
Weekly or rapid weekly
Monthly Mortgage Payment Equivalent
4 payments

Payment Pause will result in interest capitalization. Find out what that means for your mortgage below.

How do Flexible Mortgage Payment Features affect your mortgage?

Flexible Mortgage Payment Features will result in interest capitalization. That means the interest will be added back to the principal outstanding on your mortgage.

  • Interest is added back on each mortgage payment due date.
  • The amount of interest being capitalized cannot cause your mortgage to exceed the lesser of a 90% loan-to-value ratio or exceed your original principal balance.
  • The loan-to-value (LTV) ratio expresses the amount of a mortgage as a percentage of the total appraised value of a property, as determined by TD Canada Trust.
  • If necessary, we will adjust the amortization period remaining at renewal so that the mortgage does not exceed the original amortization period remaining. This may result in an increase to the amount of your regular payments after the renewal.

Property taxes and mortgage critical illness and/or life insurance must continue to be paid (if applicable).

To be eligible, all TD Canada Trust debt, including your mortgage, must be – and continue to be – up to date, with no current delinquencies or arrears. As well, there must be no evidence of previous bankruptcy or written off debt.

Payment Vacation

If you're preparing for a big or life-changing event like staying home with a new baby or taking a sabbatical from work, consider a payment vacation. Make lump-sum payments or pre-pay a little more each month towards the opportunity to take up to 4 months off from making your mortgage payment when it benefits you the most.


Expand Read more

How it works:

  • A payment vacation is only available on new mortgages or renewals of existing mortgages completed after January 24, 2011
  • You must prepay your mortgage using your prepayment privileges in order to accumulate a prepaid amount:
    • Make lump sum payments against your mortgage
    • Increase the amount of your regular principal and interest payment
    • Take advantage of rapid weekly or rapid bi-weekly payments
  • The number of eligible payments covered by your Payment Vacation will be based on a combination of your prepaid amount and your current regular monthly mortgage payment
  • A payment vacation is permitted once per term for up to four months

A payment vacation will result in interest capitalization. Find out what that means for your mortgage below.

How do Flexible Mortgage Payment Features affect your mortgage?

Flexible Mortgage Payment Features will result in interest capitalization. That means the interest will be added back to the principal outstanding on your mortgage.

  • Interest is added back on each mortgage payment due date.
  • The amount of interest being capitalized cannot cause your mortgage to exceed the lesser of a 90% loan-to-value ratio or exceed your original principal balance.
  • The loan-to-value (LTV) ratio expresses the amount of a mortgage as a percentage of the total appraised value of a property, as determined by TD Canada Trust.
  • If necessary, we will adjust the amortization period remaining at renewal so that the mortgage does not exceed the original amortization period remaining. This may result in an increase to the amount of your regular payments after the renewal.

Property taxes and mortgage critical illness and/or life insurance must continue to be paid (if applicable).

To be eligible, all TD Canada Trust debt, including your mortgage, must be – and continue to be – up to date, with no current delinquencies or arrears. As well, there must be no evidence of previous bankruptcy or written off debt.

Payment Reduction

Planning on taking a parental leave, a sabbatical from work, pursuing your studies while working part-time, or financing an unexpected expense? A payment reduction is a good feature to consider. A payment reduction lets you continue making a portion of your mortgage payments, while making room for a new chapter in your life. You can either plan ahead and prepay the reduced amount of your mortgage payments, or take a one-time payment reduction.


Expand See example

Payment reduction might be right for you if you need to:

  • Stay at home with a new baby
  • Take a sabbatical from work
  • Continue your education, while taking fewer hours at work over a short period of time

How it works:

Option 1: Pre-paid payment reduction

  • Prepay your mortgage using your prepayment privileges in order to accumulate a prepaid amount
    • Make lump sum payments against your mortgage balance
    • Increase the amount of your regular principal and interest payment
    • Take advantage of more frequent payments
  • Based on the amount you have prepaid, you may be eligible for a payment reduction for up to four consecutive months

Option 2: One-time payment reduction

  • If you have not accumulated a prepaid amount, you may be able to reduce the equivalent of one monthly mortgage payment
    • One time per calendar year
    • No more than four times during the amortization period of your mortgage
Payment Frequency
Monthly
Monthly Mortgage Payment Equivalent
1 payment
Payment Frequency
Bi-weekly, bi-weekly rapid or semi-monthly
Monthly Mortgage Payment Equivalent
2 payments
Payment Frequency
Weekly or rapid weekly
Monthly Mortgage Payment Equivalent
4 payments

A payment reduction will result in interest capitalization. Find out what that means for your mortgage below.

How do Flexible Mortgage Payment Features affect your mortgage?

Flexible Mortgage Payment Features will result in interest capitalization. That means the interest will be added back to the principal outstanding on your mortgage.

  • Interest is added back on each mortgage payment due date.
  • The amount of interest being capitalized cannot cause your mortgage to exceed the lesser of a 90% loan-to-value ratio or exceed your original principal balance.
  • The loan-to-value (LTV) ratio expresses the amount of a mortgage as a percentage of the total appraised value of a property, as determined by TD Canada Trust.
  • If necessary, we will adjust the amortization period remaining at renewal so that the mortgage does not exceed the original amortization period remaining. This may result in an increase to the amount of your regular payments after the renewal.

Property taxes and mortgage critical illness and/or life insurance must continue to be paid (if applicable).

To be eligible, all TD Canada Trust debt, including your mortgage, must be – and continue to be – up to date, with no current delinquencies or arrears. As well, there must be no evidence of previous bankruptcy or written off debt.


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